Council green lights path to final Walmart approval

Friday

Nov 9, 2012 at 4:49 PMNov 9, 2012 at 11:07 PM

A momentous first step was taken during the lone discussion item on the city council agenda when economic development manager Gary Parsons brought fourth a resolution to allow Speer approve an agreement amendment over the Walmart Supercenter that originated in Jan. 2010.“This agreement will be for placement and disbursement in the form of a construction escrow agreement for City's Tax Allocation Bond (TAB) funds previously authorized by Council for public works projects associated with the development of the project,” Parsons said from his staff report.

By Jack Barnwelljbarnwell@ridgecrestca.com

A momentous first step was taken during the lone discussion item on the city council agenda when Economic Development Manager Gary Parsons brought forth a resolution to allow Speer approve an agreement amendment over the Walmart Supercenter that originated in Jan. 2010."This agreement will be for placement and disbursement in the form of a construction escrow agreement for City's Tax Allocation Bond (TAB) funds previously authorized by Council for public works projects associated with the development of the project," Parsons said from his staff report."It should be the last agreement we bring before the council and once executed, we will be able to establish a timeline for an actual gold-shovel ground breaking and eventual opening of Walmart," Parsons said. "So we would be moving very quickly and I would hopefully tell you that would be my Christmas present to you, but it might be after the first of the year."He said no other funds were being asked for, nor were any funds going toward the development of Walmart's onsite plans."Hopefully this odyssey is coming to a close," he said.Taylor asked to see the development agreement.Parsons said everything that was planned in the 2010 agreement was largely unchanged.Parsons said the escrow plan was based on TAB funds, which were allocated at the July 18 meeting, but staff had back up plans in case TAB funds fell through."We have two options in that case," he said. "One would be that the city would utilize the Walmart development fees and we would turn around and reduce the project size and shape, which would not be our first preference."The second option would be to borrow money from Walmart for the project based upon the agreement and pay Walmart back over five years.He said the city engineer had based the priorities based on streets and traffic conditions first, and drainage second.Taylor asked what city staff had based the escrow payment upon and when it would be disbursed, and where the money would come from if TAB funds were not available."You are asking the same question that Walmart asked," Parsons said. Parsons said in the agreement process an agreement had been made that the city would disperse any money until May 2013.Jason Patin commented on the progress of the Walmart."This has been a long, long process with Walmart, about seven or eight years," Patin said. "I remember during my first or second planning commission meeting, we gave the final approval on this agreement. That was four years ago."Patin clarified it wasn't the city that was responsible for the hang-up, but rather the discussion on Walmart's side.The city council expressed its thanks to the city staff, including Parsons, Jim McRae, and Matthew Alexander."They worked tirelessly on this project," Patin said.The city council approved the go ahead for the interim city manager to approve the amended agreement.Parsons said following the meeting that he was relieved with the process."This is a great step forward," he said. "I think all that needs to be done is finishing this agreement and setting dates for ground breaking and the next thing will be opening (Walmart Supercenter)."